Great British Pound (GBP) Technical Major Currencies (2011-12-21)

By IBT Staff Reporter On 12/21/11 AT 1:58 AM

Morning Report

The pair has soared yesterday achieving a very important closing above SMA 20-grren- and above 23.6% Fibonacci retracement of the downside wave from 1.6615 to the significant low of 1.5270. At the same time, SMA 50 has limited the bullishness and it represents a very hard technical obstacle that may prevent Cable from achieving additional upside movements; whilst 38.2% Fibonacci should act as a ceiling for the intraday traders since Stochastic is gradually losing its upside steam. Therefore, we prefer staying aside today until an actionable setup presents itself; noting that, a break of 1.5590 will bring the bearishness back into focus.

The trading range for today is among key support at 1.5420 and key resistance at 1.5880.

The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.

Previous Report

Weekly Report

Support

1.5630

1.5555

1.5515

1.5460

1.5420

Resistance

1.5680

1.5720

1.5780

1.5820

1.5880

Recommendation

Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move.